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November 2019
Grasim Industries Limited | Corporate Presentation 2019
KEY MILESTONES
2
19471956
Grasim industries incorporated
Production of fabric begins at Gwalior
VSF production commences at Nagda(MP)
19571976
VSF and Pulp plants at Harihar commissioned based on in house engineering
Caustic Soda production commences at Nagda for Captive use
19771986
Vikram Cement, Grasim’s first Cement plant goes on stream at Jawad (MP)
19972006
Grasim acquires controlling stake in UltraTech Cement Ltd. from L&T
ABNL entered in JV with SunLife Insurance to foray into Financial Services Business
First Overseas acquisition (Canada) to form a JV for backward integration of Pulp
Promoted Idea Cellular jointly with Birla – Tata –AT&T Ltd
20072019
Acquired stake in Domsjo, Sweden to further integrate Pulp
Formed JV – Birla JingweiFibres Ltd in China and acquired VSF plant in China
Commissioned the single largest VSF plant with in-house technology at Vilayat
Consolidated the Caustic capacity with merger of Aditya Birla Chemicals ltd with Grasim
Grasim Industries Limited | Corporate Presentation 2019
OUR LEADERSHIP BUSINESSES
3
Through Chemicals, we are indirectly
present in various daily use products
Through Aditya BirlaCapital Limited,
we remain committedto serve the end-to-endfinancial services needsof retail and corporate
customers
Viscose Chemicals Cement Financial Services
Through UltraTech Cement Ltd, we are a part of the Roads or
Flyovers you tread upon
Through Viscose andYarn, we are present in
the eco-friendly clothing and non-woven
segment
Presence in Textiles, Fertilisers,
Insulators, and Solar Power
Allied
Standalone businesses Subsidiaries
50% 31% 19%
Revenue contribution
Grasim Industries Limited | Corporate Presentation 2019
#1 #1 #1In Viscose Staple Fibre#
In Caustic Soda & Specialty Chemicals*
In Premium Fabric
BIG IN YOUR LIFE
Market Cap(Sep 30, 2019):
INR 48,000 Crore
Total Market Cap (Sep 30, 2019):
INR 18,688 Crore
(USD 2.7 Billion)
Top 3 Asset Management Companies**
Top 5 Private Diversified NBFC
Total Market Cap (Sep 30, 2019):
INR 1.20 Lakh Crore
(USD 16.9 Billion)
#1 Cement Producerin India
#3 Global Producer(Ex- China)
57%57%
# Presence In India in Viscose, Modal and 3rd generation Viscose*Global leadership in Chlorine derivatives namely Stable Bleaching Powder and Aluminum Chloride and India leadership in Chloro Paraffin wax, PolyAluminium Chloride and Phosphoric Acid ** Excluding ETF
(USD 6.8 Billion)
4
Grasim Industries Limited | Corporate Presentation 2019
STRONG OVERALL PERFORMANCE
5
Viscose Chemical Others Cement Financial Services Viscose Chemical Others Cement Financial Services
ChemicalsViscose Cement Financial Services
Revenue (Rs. Cr.) EBITDA (Rs. Cr.)
7,101 8,374
10,325
1,439 1,680 2,052
FY17 FY18 FY19
3,813
5,004
6,436
842 1,300
1,827
FY17 FY18 FY19
25,375
30,979
37,379
5,861 6,734 7,226
FY17 FY18 FY19
FY19Rs72,971 Cr
FY19Rs.12,820 Cr
21%
65%
Revenue and EBITDA (Rs. Cr.)
-
9,083
15,032
756 1,060
FY17 FY18 FY19
30% 21%
14% 9% 5% 51% 21%
28%
16% 14% 6% 56% 8%
36%
(~$10 Bn) (~$1.8 Bn)
(~$2.1 Bn)(~$5.3 Bn)(~$0.9 Bn)
(~$1.5 Bn)
Grasim Industries Limited | Corporate Presentation 2019
FINANCIAL HIGHLIGHTS: CONSOLIDATED
6
Revenue (Rs. Cr)
32,847 34,488 36,068
55,894
72,971
FY 15 FY 16 FY 17 FY 18 FY 19
5,6837,066
8,333
10,883
12,820
FY 15 FY 16 FY 17 FY 18 FY19
17.020.1
22.519.2
17.4
7.89.9
11.5
7.1 6.9
FY 15 FY 16 FY 17 FY 18 FY 19
EBITDA Margin Net Margin
3,453
4,514
5,823
6,795
7,779
FY 15 FY 16 FY 17 FY 18 FY 19
EBITDA (Rs. Cr)
Profit before tax* Margins (%)
*Adjusted for exceptional items
22% CAGR23% CAGR
23% CAGR
(~$10 Bn)(~$1.8 Bn)
(~$1.1 Bn)
Grasim Industries Limited | Corporate Presentation 2019
Revenue (Rs. Cr)
FINANCIAL HIGHLIGHTS: STANDALONE
6,333
8,98010,346
15,786
20,550
FY 15 FY 16 FY 17 FY 18 FY 19
1,013
1,851
2,629
3,542
4,639
FY 15 FY 16 FY 17 FY 18 FY19
15.2
19.8
24.321.8 22.0
8.310.7
14.412.2 12.2
FY 15 FY 16 FY 17 FY 18 FY 19EBITDA Margin Net Margin
3.64.5
5.56.2
7.0
FY 15 FY 16 FY 17 FY 18 FY 19
EBITDA (Rs. Cr)
Margins (%) Dividend Per Share (Rs)
Adjusted for share split.
7
46% CAGR34% CAGR (~$2.9 Bn) (~$0.7 Bn)
Grasim Industries Limited | Corporate Presentation 2019
STRONG BALANCE SHEET
Consolidated Debt / Surplus (Rs. Cr.)
Standalone Debt / Surplus (Rs. Cr.)
26,659
7,006
19,653
Debt Liquid Investment Net Debt
FY19
22,402
8,828
13,574
Debt Liquid Investment Net Debt
FY18
3,3113,768
458
Debt Liquid Investment Surplus
FY19
2,9693,358
389
Debt Liquid Investment Surplus
FY18
8
31,559
8,467
23,092
Debt Liquid Investment Net Debt
H1 FY20
4,492
2,652 1,840
Debt Liquid Investment Net Debt
H1 FY20
(~$1.9 Bn)(~$2.8 Bn) (~$3.3 Bn)
(~$56 Mn) (~$66 Mn)
(~$266 Mn)
Grasim Industries Limited | Corporate Presentation 2019
CAPACITY EXPANSION PLANS
9
VSF Capacity (KTPA) Caustic Soda Capacity (KTPA)
155 155 155
88 88 88
142 158 162
164 164
383
FY19 FY20 FY21+
270 270 270
129 129 129
91 91 91
91 91 91
91 91 91
110 110201
365 365
438
146
FY19 FY20 FY21+
549
43%
788
1,147
27%1,457
Vilayat expansion(219 KTPA)H2 FY21 (2 phases of 300 TPD each)
BC KharachVSF and Specialty Fibre
Harihar
Nagda
BB’Puram (146 KTPA)H2 FY21
Vilayat expansion(73 KTPA)H2 FY21
Rehla expansion(91 KTPA)H1 FY21
Ganjam
Karwar
Veraval
Renukoot
Nagda
Excludes Century Rayon Caustic capacity of 24 KTPA
Grasim Industries Limited | Corporate Presentation 2019
CAPEX PLAN
10
506 495 438
1,105
2,092
1,136
3,935
2,678
FY15 FY16 FY17 FY18 FY19 FY20 FY21+
Represents planned Capex
H1 FY20
3,814
Capex (Rs. Cr.)
(~$550 Mn)(~$560 Mn)
Grasim Industries Limited | Corporate Presentation 2019
DOW JONES SUSTAINABILITY INDEX (DJSI)
11
Grasim DJSI Performance(on Key parameters)
Industry peer average
GrasimScore
Global best
Grasim has largely outperformed the global Industry average score
1
2
3
4
Creating a Sustainability culture in the organization
We have made commitment of new investments on sustainability front
We have set long-term goals in the areas of environment, safety,
employees and society
Focus on new areas of improvement to enhance our
sustainable footprint
Risk & Crisis Management
Customer Relationship Management
Corporate Citizenship and Philanthropy
Environmental Policy & Management Systems
Viscose Staple Fibre – Fastest Growing Fibre
Grasim Industries Limited | Corporate Presentation 2019
CURRENT FIBRE BASKET
Viscose is the most sustainable fibre, made from natural materials and degrades at faster pace than other fibres:
Fibres from nature Synthetic fibres
Protein-based Cellulose based
Wool, Silk, Cashmere Cotton, Jute
From Synthetic Polymers
From inorganic substances
PolyesterNylon
PolypropylenePolyurethane
Acrylic etc.
Carbon Ceramics
Glass Metal
Viscose StapleFibre (VSF)
Comfort and Soft feel
Breathable & Highly
absorbent
Vibrant color depth
Highly Uniform
Natural base & Eco-friendly
Static Dissipation
13
Viscose: 8 Weeks Cotton: 15 Weeks Synthetic: Over 200 years
Modal LyocellBirla Viscose
Grasim Industries Limited | Corporate Presentation 2019
VSF: FOREST TO FASHION
14
FOREST WOOD PULP VSF YARN FABRIC GARMENT BRAND & RETAIL
Sourced fromCanada,Sweden & India
Manufactured inCanada, Sweden& India
India Work with value chain partners to create VSF awareness and demand
Grasim Industries Limited | Corporate Presentation 2019
TRANSFORMING VISCOSE FIBRE
15
608 611 621 653 566
664 654 590 631 660
778 853
930 1,040
1,264
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
With sustainability
at the HEART
of all decision making
Muted growth
TRA
NSF
OR
MA
TIO
N
Integrate
Invest
Innovate
High backward integration, encompassing over 80% of costs thereby providing significant competitive advantage over non-integrated players
Pioneering ingredient branding to create demand pull, enhance end-use applications and user experience through our LIVA initiative
Maintaining leadership in all our Core businesses with a solid Capex plan to increase our Viscose capacities by 43% to 788 KTPA Enhance Specialty share to 40% in the fibre portfolio
DomesticSales
volume growth
(TPD)
Grasim Industries Limited | Corporate Presentation 2019
HIGH BACKWARD INTEGRATION
Input % of Cost Capacity Requirement Met
Dissolving Grade Pulp
Caustic Soda
Power & Steam
Carbon Disulphide
& Sulphuric Acid
54%
15%
8%
3%
4 Manufacturing plants
1,147K TPA
217 MW
55% - 60%
Fully captive
Fully captive
Fully captive
16
(Cogeneration)
(India: 1 & Overseas: 3)
`Note: As of FY 2019Power capacity includes shared capacity at Vilayat with Chemicals
Grasim Industries Limited | Corporate Presentation 2019
STATE-OF-THE-ART R&D CENTRES OFFER CREATIVE SOLUTIONS ACROSS VALUE CHAIN
17
PLANTATION
PULP
FIBRETEXTILE VALUE
CHAIN PARTNER
Grasim Forest Research Institute, Harihar, India
Pulp and Fibre Innovation Centre (PFIC), Taloja, Maharashtra
Fibre research, Kharach, Gujarat(Pilot plant)
Birla Research Institute, Nagda, India
Textile Research and Application Development Centre (TRADC)
Pulp research, DommInnova, Domsjo Fabriker
Grasim Industries Limited | Corporate Presentation 2019
BIRLA CELLULOSIC FIBRE IS INGREDIENT TO MORE THAN 100 BRANDS
18
Customer base
Overseas Pulp JV’s
Servicing ~650 Customers
Grasim Industries Limited | Corporate Presentation 2019
LIVA is Grasim’s ingredient branding with a natural fluid fashion promise to the customers. LIVA assures high quality fabric applied through accredited value chain termed as Liva Accredited Partner forum (LAPF)LIVA Eco system delivers consumers continuous innovation in top quality fluid fashionable clothing.
LIVA: CREATING DEMAND PULL IN INDIA
19
LIVAeco(Sep 2018)
LIVAhome(Jan 2019)
LIVA Saree(Aug 2019)
LIVALaunch in
2015
LIVAEco – Sustainable Fashion Solution
Natural fluid fashion that is ECO-ENHANCED
Sourced from FSC® C118017 certified sustainable forests that can be verified using end-to end tracer
LAUNCH OF LIVA – Creating demand pull for Viscose
LIVAHome – Tapping the home textiles market ~$3 Bn addressable market size
LIVASarees – Extending LIVA product portfolio ~$6 Bn addressable market size
Bed sheets, Duvets & Comforters
LIVA brand extension for Home Textiles: LIVA Home (Post success of LIVA and LIVAeco)
Sarees reimagined with LIVA enable effortless drape & luxurious softness
Pioneering ingredient branding for Viscose Staple Fibre
Presenting LIVA, a new-age naturally created fabric that transforms not just the garment but also the person wearing it. It is comfortable, soft, 100% natural and eco-
friendly. Moving from B2B TO B2B2C Business Model
Grasim Industries Limited | Corporate Presentation 2019
147
190
220
220
SS16
SS17
SS18
SS19
22
32
38
40
SS16
SS17
SS18
SS19
LIVA: MILESTONES ACHIEVED
20
LIVA Tagging (Million) Brands Out-reach
3500 Stores
220 Cities
3300 Stores
220 Cities
2844 Stores
190 Cities
1819 Stores
147 Cities16
24
35
42
SS16AW16
SS17AW17
SS18AW18
SS19AW19
LIVA Available atSS – Spring Summer AW - Autumn Winter
Grasim Industries Limited | Corporate Presentation 2019
2009 2014 2018 2023P
SUSTAINED FUTURE GROWTH
21
CAGR
Cotton VSF PSF Others
7%
CAGR
4,7545,381
7,542
Capacity 5,416 7,044 ~9,0002009 2014 2018 2023P
2.3%
CAGR
5.2%
2.4%
0.9%
2.8%
3.4%
86,484
100,343
115,432
~6.5%
CAGR
Global Fibre Demand (KTPA) Viscose Staple Fibre Demand (KTPA)
70,341
-1.2%
4.4%
7.5%
2,732
8%
CAGR
CAGR
3,532
Source: Industry & Company estimatesSource: Industry & Company estimates
3.5%
Grasim Industries Limited | Corporate Presentation 2019
EXPANDING CAPACITIES IN TUNE TO GROWING DEMAND
22
VSF Capacity (KTPA)
155 155 155
88 88 88
142 158 162
164 164
383
FY19 FY20 FY21+
549
43%
788Vilayat expansion(219 KTPA)H2 FY21 (2 phases of 300 TPD each)
BC KharachVSF and Specialty Fibre
Harihar
Nagda
Capex (Rs. Cr.)
302 182 206
421
1,160
773
2,026
1,588
FY15 FY16 FY17 FY18 FY19 FY20 FY21+
H1FY20
Represents planned capital expenditure
~Rs. 3,500 Cr. expansion Capex at Vilayat, one of the largest single location VSF site
2,361(~$340 Mn)
(~$290 Mn)
Grasim Industries Limited | Corporate Presentation 2019
SUSTAINABLE FASHION INITIATIVES
23
Sustainable Forestry
o 100% of wood is certified FSC® C118017 / SFI® / PEFC™; No purchase of wood harvested from high conservation/ illegal forests
o Global leader in Canopy's Hot Button Report with 'Light Green Shirt'
o USDA Biobased certification for Birla Modal, Birla Excel and Birla Spunshades
Carbon Footprint
o Birla Cellulose is carbon neutral in scope 1 and 2 emissions
o Continuous reduction in energy consumption, chemicals consumption, COD and sulphur emission
o Verified Higg Index FEM 3.0 Scores of 85%+ all manufacturing sites
GHG Reduction
o Total Scope 1 and Scope 2 GHG emissions were found to be 3.22 Mt CO2e, and the total net sequestering was 3.44 Mt CO2e at forests directly managed by Birla Cellulose, completely offsetting Scope 1 and Scope 2 emissions
EUBat Compliance
o Plans under implementation of going beyond regulatory norms to the most stringent EU norms at all the plant sites by the end of 2022 towards close looping the viscose production
o $170 Million capex across ABG units including Grasim
R
Grasim Industries Limited | Corporate Presentation 2019
SUSTAINABLE FASHION INITIATIVES
24
Lowest Water Consumption
Environment friendly Fibre
Circular economy/ Recycle of textile waste
o Achieved lowest water consumption per ton of VSF globally. Water consumption in FY19 reduced by 27% YoY to <20 m3/TF
o Water Stewardship- We have set a target to bring down the consumption by about 60% by 2022 over 2015 (baseline)
o Commissioned 3rd Generation 16 KTPA Specialty Fibre plant using in-house Green technology, in May’19 which will enable entry into newer end use segments with superior quality offerings
o Strengthened our environmental credentials by launching LIVAeco: Eco-enhanced variant of LIVA with ‘End-to-end’ traceability, a first in the country
o Achieved a breakthrough in manufacturing viscose fibre using pre-consumer waste. This addresses concern relating to textile waste generation and use it as alternate raw material
o Efforts to build capabilities to recycle 50%+ cellulosic waste
Grasim Industries Limited | Corporate Presentation 2019
VISCOSE PERFORMANCE
6,643 6,0227,101
8,374
10,325
FY15 FY16 FY17 FY18 FY19
25
EBITDA (Rs. Cr.)Net Revenue (Rs. Cr.)
Global VSF prices have weakened as expected during the year on account of extra capacity in the Industry and US-China Trade war
Globally, VSF continues to be fastest growing fibre with projected 6-7% growth; India demand continues to be buoyant with double digit growth: Expect to restore supply demand balance over next 12 to 18 months
Grasim better placed to withstand global price volatility by virtue of superior product offering, technical and customer support leading to higher realizations in India
Capital Employed (incl. CWIP) [Rs. Cr.] and ROCE
5,282 5,102 4,725 6,954
7,504
FY15 FY16 FY17 FY18 FY19
459
923
1,4391,680
2,052
FY15 FY16 FY17 FY18 FY19
45%12%
6% 14% 26% 20% 22%ROCE
(~$1.4 Bn)(~$0.2 Bn)
(~$1.1 Bn)
Chemicals
Grasim Industries Limited | Corporate Presentation 2019
CHLOR ALKALI PORTFOLIO
27
Caustic Soda Chlorine
Salt+
Electricity
Pulp &Paper
Textile DetergentAnd others
ViscoseStaple Fibre
Alumina
Poly-AluminiumChloride
ChlorinatedParaffin
PhosphoricAcid
Stable BleachingPowder
AluminiumChloride
#1 Producer in India #1 Producer in India #1 Producer in India
#1 Producer Globally #1 Producer Globally
Grasim Industries Limited | Corporate Presentation 2019 28
CAUSTIC SODA: CAPACITY RAMP UP
1,147KTPA
Chlor Alkali plant in Renukoot from Kanoria Chemicals
(Capacity: 129 KTPA)
Chlor Alkali plant in Karwar from
Solaris ChemTech
(Capacity: 60 KTPA)
Chlor Alkali plant in Ganjam from
Jayshree Chemicals Ltd
(Capacity: 57 KTPA)
2011
2014
2014 2015
2019
FY10 FY19
350KTPA
Brownfield expansion at Vilayat: the largest single site Caustic plant
(Capacity: 182 KTPA)
Acquired under-construction Chlor-Alkali
plant on East coast(Potential Capacity:
365 KTPA)Rehla
Nagda
Veraval
Nagda270
KTPA
Vilayat365
KTPA
Renukoot129
KTPA
Rehla110
KTPA
Ganjam91 KTPA
Karwar91 KTPA
Veraval91 KTPA
Grasim Industries Limited | Corporate Presentation 2019
STRONG PRESENCE IN HIGH GROWTH BUSINESSES: CAUSTIC SODA
Fragment industry -23 players Top-3 players account for ~50% of capacity
Grasim: Pan India Player
27%
14%
10%
4%FY19
Aditya Birla DCM GACL
Meghmani Others
29
Source: Company estimates
NagdaVilayat
Renukoot
Rehla
Ganjam
Karwar
Veraval
Shahad
Balbadrapuram
Grasim Industries Limited | Corporate Presentation 2019
FOCUS ON CHLORINE INTEGRATION
30
Applications of Chlorine in India
CPW, 19%
HCL, 18%
Chloromethanes, 12%
Water Treatment, 3%
Organics, 15%
Inorganics, 9%
Vinyls (incl PVC), 8%
Others, 15%
Source: Company estimates
Captive Chlorine Consumption
Our Presence
222,555
241,847
266,097
28% 29% 28%
200,000
210,000
220,000
230,000
240,000
250,000
260,000
270,000
0%
5%
10%
15%
20%
25%
30%
35%
Chlorine & HCl consumed in VAP's (Tons)
Percentage of Chlorine Consumption in VAP
FY17 FY18 FY19
Grasim Industries Limited | Corporate Presentation 2019
EXPANDING CAPACITIES IN TUNE TO GROWING DEMAND
31
Caustic Soda Capacity (KTPA)
270 270 270
129 129 129
91 91 91
91 91 91
91 91 91
110 110201
365 365
438
146
FY19 FY20 FY21+
1,147
27%1,457
BB’Puram (146 KTPA)H2 FY21
Vilayat expansion(73 KTPA)H2 FY21
Rehla expansion(91 KTPA)H1 FY21
Ganjam
Karwar
Veraval
Renukoot
Nagda
Capex (Rs. Cr)
166
269 227
554
734
249
1,542
789
FY15 FY16 FY17 FY18 FY19 FY20 FY21+
H1FY20
Represents planned capital expenditure
1,038(~$150 Mn)
(~$220 Mn)
Grasim Industries Limited | Corporate Presentation 2019
CAUSTIC SODA: LONG TERM PERFORMANCE INDICATORS
32
319 418 523 493 542 781
951 1,041
1,307
2,813 3,106
4,039
5,059
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19
Chemical Net Revenue (Rs. Crore) Indexed ECU
(~$0.7 Bn)
FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10FY09FY08FY07
Grasim Industries Limited | Corporate Presentation 2019
CAUSTIC SODA: INPUT COST STRUCTURE
Input % of Cost Capacity Requirement Met
Power
Salt
33`Note: As of FY 2019
60%
15%
257 MWh
~250 KTPA
~60%
~15%
Power capacity includes shared capacity at Vilayat with Viscose
Grasim Industries Limited | Corporate Presentation 2019
CHEMICALS PERFORMANCE
1,701
3,429 3,813
5,004
6,436
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY15 FY16 FY17 FY18 FY19
34
Net Revenue (Rs. Cr.)
Consistently improvement in Power security and the share of renewables. Over the next 18 to 24 months we are set to expand our CPP capacities and adopt more wind/solar
Salt securitization by increasing capacities at current salt fields and setting up new fields
Expanding capacity to 1,457 KTPA from 1,147 KTPA by FY 21. Expanding the capacities of existing VAPs and entering new VAPs by H2FY21. (Capex Planned ~Rs. 2,500)
Globally, Caustic soda price is expected to stabilize, and Indian ECU should follow suit too
EBITDA (Rs. Cr.)
Capital employed (incl. CWIP) [Rs. Cr.] and ROCE
1,922 3,741 3,778 4,261
4,975
10%12%
17%
26%
32%
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
FY15 FY16 FY17 FY18 FY19
0%
5%
10%
15%
20%
25%
30%
35%
Capital Employed (Incl CWIP) ROCE (Incl. CWIP) - Annualized
292
663842
1,300
1,827
0
200
400
600
800
1000
1200
1400
1600
1800
2000
FY15 FY16 FY17 FY18 FY19
39%58%
(~$921 Mn)(~$261 Mn)
(~$719 Mn)
Grasim Industries Limited | Corporate Presentation 2019
SUSTAINABILITY
35
Water
Focus on water consumption through reduction, recycle and reuse in all the units. Zero liquid discharge at Nagda and Renukoot achieved and Rehla and Ganjam in progress
Energy
Continuous focus on improving energy efficiency across businesses
Adding renewable mix to the overall power mix
Safety
Tracking movement of chlorine (tonner) from factory to customer‘s end through our mobile application Suraksha providing real-time feedback
Circular Economy
Fly ash waste generated in power plant, being utilized in cement for blending purpose
Salt Transportation - Replace HDPE salt bag with rack/ containers
Allied Businesses
Grasim Industries Limited | Corporate Presentation 2019
OTHER BUSINESSES
37
Fertilisers Textile Insulators
Net Revenue (Rs. Cr.)
EBITDA (Rs. Cr.)
Net Revenue (Rs. Cr.)
EBITDA (Rs. Cr.)
Net Revenue (Rs. Cr.)
EBITDA (Rs. Cr.)
1,815
2,812
FY18 FY19
195
238
FY18 FY19
1,062
1,501
FY18 FY19
62
139
FY18 FY19
390
434
FY18 FY19
34 22
FY18 FY19
(~$402 Mn)
(~$34 Mn)
(~$215 Mn)
(~$20 Mn)
(~$62 Mn)
(~$3 Mn)
Consolidating Subsidiaries
Grasim Industries Limited | Corporate Presentation 2019
ULTRATECH CEMENT LIMITED
o The Indian cement industry grew approximately by 12% in FY19
o Overall focus on maintaining moderate debt and enhancing liquidity
o Revival of rural housing, Affordable housing and Infra spending are some favorable factors for demand growth
o UltraTech completed the acquisition of Century’s cement business, with this acquisition, its manufacturing capacity stands augmented to 117.4 mtpa, including its overseas capacity
25,37530,979
37,379
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY17 FY18 FY19
39
5,8616,734
7,226
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY17 FY18 FY19
Net Revenue (Rs. Cr.) EBITDA (Rs. Cr.)
o Achieved successful integration of the biggest acquisition in Indian Cement Industry (21.2 MTPA) as planned in 8 quarters
(~$5.3 Bn) (~$1.1 Bn)
Grasim Industries Limited | Corporate Presentation 2019
ADITYA BIRLA CAPITAL LIMITED
40
PROTECTING INVESTING FINANCING CONSOLIDATED
Premium1 AAUM2 Lending Book3 Revenue4 PAT
1 Includes Life Insurance and Health Insurance gross total premium (as per IRDAI reporting)2 AAUM of Asset Management business3 Includes NBFC and Housing Finance businesses4 Consolidated segment revenue ; for Ind AS statutory reporting purpose Asset management and wellness business are not consolidated and included under equity accounting
~$1.1Bn~$38Bn ~$9.1Bn ~$2.3Bn
~$125Mn
Grasim Industries Limited | Corporate Presentation 2019
OTHER SUBSIDIARIES
41
Parameters Sep 2019
Cumulative Installed Capacity (MW) 182
No. of Projects 16
No. of Projects with Group Companies 11
Capacity with Group Companies (MW) 111
Q2FY20 Q1FY20
Net Revenue Rs. Cr. 20 26
EBITDA Rs. Cr. 10 14
EBITDA Margin % 50% 54%
EBIT Rs. Cr. 5 8
Capital Employed
(Incl. CWIP)Rs. Cr. 973 851
Particulars (Rs. Cr.)
Solar subsidiaries Grasim Premium Fabrics (Brand Soktas)
Q2FY20 Q1FY20
Net Revenue Rs. Cr. 45 48
EBITDA Rs. Cr. 7 8
EBITDA Margin % 16% 17%
EBIT Rs. Cr. -3 4
Capital Employed
(Incl. CWIP)Rs. Cr. 177 181
Particulars (Rs. Cr.)
The merger of Grasim Premium Fabric Private Limited with the Company is under process
Post acquisition, the fair valuation exercise has been completed in Q2FY20
Planned capacity at 500 MW by FY20
Appendix
Grasim Industries Limited | Corporate Presentation 2019
CERTIFICATIONS & AWARDS
43
○ Grasim Industries has been Ranked # 205 in the list of “Global 2000 – Growth Champions 2018” by Forbes Magazine, USA
○ Grasim Industries has been ranked the #154 Top Regarded Company of the World in 2018
○ Grasim Industries Limited ranks #59 in Forbes Global 2000 Best Employers List
○ Harihar Pulp unit has been declared the winner of Golden Peacock Award for Sustainability – 2018
Sustainability initiatives at Harihar like Colour reduction of Treated effluent/Pulp Unit etc. this year
○ Liva- Best Use of experiential Marketing in a Loyalty Programme at 11th Customer
Loyalty Summit on 1st Feb 2018
○ Liva- Most admired fashion innovation of the year by India Fashion Forum
Grasim Industries Limited | Corporate Presentation 2019
GLOSSARY
44
Abbreviation Particulars
AAUM Average Asset Under Management
CAGR Compound annual growth rate
CPP Captive Power Plant
CPW Chlorinated Paraffin Wax
ECU Electrochemical Unit
FY Financial Year
Exchange Rate Avg. USD-INR : 69.905 | Closing USD-INR : 69.1612
HCL Hydrochloric Acid
Ind AS Indian Accounting Standards
IRDAI The Insurance Regulatory and Development Authority of India
KTPA Thousand ton per annum
MTPA Million ton per annum
MWh Mega Watt Hour
NBFC Non-Banking Finance Company
ROCE Return on Capital Employed
Rs./ INR Indian National Rupees
TPD Ton per day
VAP Value Added Products
VSF Viscose Staple Fibre
Grasim Industries Ltd.Aditya Birla Centre'A' Wing, 2nd Floor, S.K. Ahire Marg ,WorliMumbai 400 030 ,India
Investor relations TeamEmail: [email protected]
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